March 20, 2020 / 1:45 PM / 19 days ago

BRIEF-UK's FCA Sets Guidelines For Mortgage Providers On COVID-19-Related Loan Scheme

March 20 (Reuters) - UK’s Financial Conduct Authority:

* UK’S FCA SETS OUT NEW GUIDANCE FOR MORTGAGE PROVIDERS AND FOR LENDERS TAKING PART IN THE CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME

* “MAKING IT CLEAR THAT NO RESPONSIBLE LENDER SHOULD BE CONSIDERING REPOSSESSION AS AN APPROPRIATE MEASURE AT THIS TIME”

* FIRMS SHOULD GRANT CUSTOMERS PAYMENT HOLIDAY FOR INITIAL PERIOD OF 3 MONTHS AS THEY MAY EXPERIENCE PAYMENT DIFFICULTIES DUE TO CORONAVIRUS

* FIRMS SHOULD ENSURE THAT THERE IS NO ADDITIONAL FEE OR CHARGE (OTHER THAN ADDITIONAL INTEREST) AS A RESULT OF PAYMENT HOLIDAY.

* REPOSSESSION SHOULD NOT BE COMMENCED OR CONTINUED WITH UNLESS FIRM CAN DEMONSTRATE THAT CUSTOMER AGREED IT IS IN THEIR BEST INTEREST

* FIRMS SHOULD TAKE STEPS TO ENSURE THAT PAYMENT HOLIDAY DOES NOT HAVE A NEGATIVE IMPACT ON CUSTOMER’S CREDIT SCORE. Source text for Eikon: Further company coverage: [ ]

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below